Options Brief: Fuqi International (FUQI)

FUQI – Fuqi International, Inc. – Shares of the designer of high quality precious metal jewelry in China are up 5.25% to stand at $9.40 as of 11:15 am (ET) after earlier rallying as much as 10.75% to touch an intraday high of $9.89. The sharp increase in the price of FUQI shares inspired some optimistic options traders to pick up roughly 2,400 calls at the July $10 strike for an average premium of $0.65 per contract. Investors long the calls make money as long as Fuqi International’s shares increase 13.3% over the current price of $9.40 to surpass the average breakeven price of $10.65 by July expiration. 

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

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